Brazilian mills slash sugar hedging to lowest level in eight years — Archer Consulting
Brazilian sugar producers have hedged only 58% of their expected exports in the current season, the lowest level in eight years, as low prices reduce the use of futures contracts by mills as a way to guarantee future revenue.
It is reported by Nasdaq.
According to a report released on Wednesday by Brazil-based Archer Consulting, Brazilian sugar companies have sold forward in New York's ICE the equivalent of around 11,2 million tonnes of raw sugar.
Archer said that at this time last season, mills had hedged 68% of their expected sugar exports. The current level of price fixation through futures is the smallest since the consultancy began publishing the data in the 2012/13 season.